TQM Assignment on Six Sigma

Submitted to Dr G. Muruganantham

Prepared By: Taposh Sarkar Roll No- 215110075 MBA 2nd Year

INDEX

Page No Introduction to Six Sigma Beginning Of Six Sigma Six Sigma Methodology The ways in which Six Sigma can fail Motorola Case Study GE Six Sigma Case Study Six Sigma in Ford Motors Six Sigma in Indian Context TCS Bibliography . .. .. .. . . . . 3 4 8 15 16 17 19 21 35

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Introduction to Six Sigma

The quality performance is the foundation stone of all types of industries. The growth of an industry depends on its performance quality. So checking out of the performance quality of an industry is something which is inevitable. SIX SIGMA The

statistical representation, is a process of quality measurement, which helps the organization in the improvement of their quality. Six Sigma is a systematical process of quality improvement through the disciplined dataanalyzing approach, and by improving the organizational process by eliminating the defects or the obstacles which prevents the organizations to reach the perfection . Six sigma points out the total number of the defects that has come across in an organizational performance. Any type of defects, apart from the customer specification, is considered as the defect, according to Six Sigma. With the help of the statistical representation of the Six Sigma, it is easy to find out how a process is performing on quantitatively aspects. A Defect according to Six Sigma is nonconformity of the product or the service of an organization. Since the fundamental aim of the Six Sigma is the application of the improvement on the specified process, through a measurement-based strategy, Six Sigma is considered as a registered service mark or the trade mark. Six Sigma has its own rules and methodologies to be applied. In order to achieve this service mark, the process should not produce defects more than 3.4. These numbers of defects are considered as the rate of the defects in a process should not exceed beyond the rate 3.4 per million opportunities . Through the Six Sigma calculation the number of defects can be calculated. For this there is a sigma calculator, which helps in the calculation.

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Beginning of Six Sigma.

In order to truly understand what Six Sigma is it is important to understand some of the basics of when, where, and why 6 Sigma was developed. It all began as a baby of the Motorola Corporation. The company was doing well and thriving back in the 1980 s but those who were in charge knew that there must be a better way to improve their company. They weren t struggling but they also knew, as many did, that the good times weren t going to last forever. In their attempt to find a better way to do business they asked one of their employees at the time bill Smith to look around at different management programs that were around and try to come up with a better way to do business. After much research, Mr. Smith found that if he took the best of each and every system that he could get the best overall results and by using statistical analysis he could show the results that were being attained. To Bill Smith and the Motorola Corporation the combination just made sense and so they unveiled the methodology to the rest of the corporate world and many were interested but few were willing to give it a shot. It is important to realize that this methodology was being introduced during a time when most businesses were flourishing and the need for this type of management program simply wasn t present. As time went on, more and more companies realize the value of having a process that not only served to bring everyone into the success of the business and build teamwork but also of finally having something that could help them measure results quantitatively. After all an improvement in the bottom line is really what all companies are truly seeking and finally having a way to measure results provided companies with the input they needed to further refine and improve upon their results.

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Over time more companies have been drawn to Six Sigma because it is one of the only comprehensive business management training programs that helps a company improve on multiple levels at once. It is a process by which everyone in the company can get involved and contribute to improving the process of production, the customer experience, and ultimately the business bottom line. Teamwork and statistical analysis working together in this format make for a winning combination and have shown businesses in many different sectors the success that they have been seeking for many years.

Five Reasons Why Six Sigma Black Belts Make Better Leaders
As labor and production costs rise, companies are constantly looking for ways to make processes more efficient and increase profit margins. It is important for such companies to understand why Six Sigma Black Belts make better leaders. Six Sigma is a process improvement methodology which eliminates waste and improves quality. Six Sigma Black Belts are certified in this project method, and use a set of tools to define, measure, analyze, improve and control any process. This article presents five reasons why those who use these methods make better project and department leaders. 1. Organized improvement: Often, business leaders note a problem, listen to subject matter experts who provide possible solutions, and then make changes according to those solutions. The problem with this is that solutions were not tested, and no plan was put in place to ensure the solutions actually bring about real change. 2. Leadership without bias: A Six Sigma Black Belt has no bias toward a problem or any possible solution before data is analyzed. This is because the Black Belt knows first thoughts on improvement may not always be correct. Just because one thing always happens directly after another does not mean there is a cause and effect relationship, and the Six Sigma expert knows only careful measurement will be able to show that type of relationship.

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3. Data driven decisions: All decisions made by a Black Belt are driven by data. A leader employing this method works with facts, not opinions, and is able to forecast results with excellent accuracy. Often times, estimated results fall within a 5% margin of error when compared to actual results! 4. Root cause analysis: The entire DMAIC (define, measure, analyze, improve, control) process is set up in order to identify root causes of issues. Only by locating the root cause of a production or quality problem can a team effectively produce solutions. Implementing solutions without knowing the true cause of the problem will only mask issues. 5. Perpetual improvement: Once a Six Sigma project is completed, a Black Belt's work is not done. Hardly any process ever reaches true perfection, but a Black Belt is always on the lookout for additional efficiencies and better profits. There are many reasons why Six Sigma Black Belts make better leaders, but the bottom line is that they can drive processes toward increased efficiencies and better profits.

The Many Duties of a Six Sigma Champion

A Six Sigma Champion has a highly important role to play in a Six Sigma organization. These are the people who take control of ensuring that the entire company is working by Six Sigma principles. They are part of upper management, and they are the mentors for the Black Belts in the organization. Another important duty they have is recognizing out of the Black Belts which ones would be ideal Master Black Belts. The extensive duties of the Six Sigma Champion include those that ensure that new Six Sigma ideas are actually feasible. One of the main points of Six Sigma is to improve production at the same time that the company decreases its costs. The Six Sigma Champions are the ones who determine that the costs required of the new Six Sigma strategies will create the results that are

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expected. Six Sigma Champions are also the ones who give their Black Belts and Green Belts the resources they need to put everything into effect. Six Sigma Champions are known as people who will step in and solve any problems that arise during the implementation of new Six Sigma ideas. Champions are the go-to people when things are not running as smoothly as the Black Belts and Green Belts would like. Champions are also the mediators between different personalities. Whenever disagreements arise between people, it is the Champion that is called in to defuse the situation. Six Sigma requires that Black Belts, for example, remain in their positions of running Six Sigma projects; it is undesirable for Black Belts to have the need to fight upper management to complete their projects. Among the many duties that Six Sigma Champions have is to be fully knowledgeable in their businesses operations. They must be completely familiar with the technology that is used within their businesses. Six Sigma Champions are also the ones that are responsible for choosing Six Sigma projects to carry out. They must be able to select the projects that are going to have the greatest effect on the company and they must choose the right Master Black Belt who can best put the project in motion. As Champions are the ones who will decide which Six Sigma projects may be the ones that save the company money, they are the ones who will be held responsible for the outcome of the project. If the project does reduce costs for the company, the Champion will be given the credit.

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Six Sigma Methodology

The Six Sigma methodology follows the DMAIC principle of problem solving. The acronym is taken from the first letters for each phase: Define, Measure, Analyze, Improve, and Control. The DMAIC methodology provides a structure for logic progression through a problem solving activity.

Part 1: Define

First Step of Define - When should we use Six Sigma? The very first step is to define your problem. By asking some basic questions and analyzing the current issues, a fundamental understanding can be gained to assist in choosing the correct methodology to solve the problem. Perhaps a full blown Six Sigma project is not needed; instead implementing Lean Manufacturing tools or TOC (Theory of Constraints) may solve the issue.

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Define the Problem Once it is determined that it is necessary to utilize the Six Sigma approach there are some key elements in defining the problem that ensure success. 1. Prioritize opportunities for improvement. What are the issues and their impact within the organization? The impact should be evaluated from different functional areas ranging from financial to strategic goals of the organization. 2. Select the appropriate project based on the data collected in step one and management's acceptance. 3. Create a project charter covering the project statement, project scope, business impact, goals, timeline, project team, and management commitment. 4. Finally, recruit a dedicated cross-functional team comprised of stakeholders to find a solution to the problem. The Define phase is where an individual needs to realize that the Six Sigma methodology might not be the best way to resolve the problem. This expertise comes through training and experience. Ultimately, if you properly define the problem, you define the proper course of action, resulting in a bigger return on investment spent to solve the problem.

Part 2: Measure
The Measure phase uses a series of tools to take snapshots of the current state of the process or system from the 50,000 ft. level down to the ground floor. This phase is critical for the project. It allows the establishment of baseline data to later evaluate impact of the project. This will also allow current targets for performance to be evaluated and revised as needed. Determination of process inputs and outputs are accomplished during this phase. Finally, measurement systems used by, or to monitor the process or system are validated.

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What is the current state of the process / system? First, it is important to describe what the current state is. In other words, What is currently going on? To gain an understanding of the current state, a value stream map (VSM) is usually employed. VSM allows a high level look at the process as it relates to the organization as part of the system of inputs and outputs. VSM will identify those inputs that are critical and potential areas that need improvement. This is also the time when a detailed process map, specific to the problem process, can be created. This is a step by step flow chart or outline of how the process is operated. The key is not just taking current work instructions and using them during this step. This can potentially lead to misunderstanding of the current state for a couple of reasons. 1. If the work instructions were created at an earlier time they may not be updated to the present way of performing the operations. 2. Operators performing the tasks could have developed new techniques that are not reflected in the work instructions. Finally, by focusing the view closer to ground level, a cause and effect analysis can be performed. By reviewing the VSM and process map, along with brainstorming with the team, those inputs that are thought to influence certain outputs or issues can be documented. Do we have valid data? The final stage of the Measure phase is to review the data that discussions are based on to ensure that it is appropriate and valid. The first part is to review that the metrics or data being monitored are appropriate for the process or issue under consideration. To assist, the question to ask can be, Is the metric being used truly related to the process under consideration and does it allow understanding into the performance? The second part is verifying the validity of the measurement data. The easiest way to attack this is to perform a Gage R&R (Gage repeatability and reproducibility). This will show if the measurements system can detect the variation in the process while being accurate.

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Part 3: Analyze
If Measure is considered the critical phase, then the Analyze phase is the heart of the project. The Analyze phase identifies and verifies the critical inputs that affect the key outputs to the process, project, or system being studied. In this phase data is systematically collected and analyzed to determine the significance of the inputs on the outputs.

Do you have a plan for Analysis? As stated above, the data that is collected is gathered systematically. In writing this article I checked the synonyms for systematically. They are: methodically, thoroughly, steadily, analytically, and scientifically. It is important to emphasize this point for it is the key to effective problem solving (Six Sigma Methodology). Most problem solving is done with passive collection of data. The data is usually historical or what is currently coming from the system under investigation. This approach may not represent the current state or an unknown anomaly occurring at that moment. There must be a plan for collecting the data, under controlled conditions, to understand, analyze, and interpret the data correctly. While there are a variety of tools used at this phase, the most powerful, in my opinion, is the DOE (Design of Experiments). By setting up the DOE, a systematic plan is created for turning on and off inputs while collecting data on the outputs. This allows you to not only see if the inputs themselves affect the outputs; but if there is an interaction between the inputs. The easiest way to view this is through an example. Figure 1 is a matrix to see the effects of volume and pressure on weight from a simple system.

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Figure 1 Volume High Low High Low Pressure High High Low Low Weight Results 0 0 0 0

As the system is run, the inputs of volume and pressure are changed according to the matrix and the resulting weight is recorded. This data is statistically analyzed to determine if volume, pressure, or the interaction of volume and pressure have an effect on weight. It is this analysis that can pinpoint the areas for improvement. This has been a very brief explanation of the Analyze phase and the one tool, DOE, which is basic to most Six Sigma projects. Understanding and using DOE takes training and experience to utilize it effectively. When used effectively, an organization can gain understanding into its processes or systems that it would not have thought possible. This can result in increased productivity and decreased costs. Based on this understanding the next phase of the project, Improve, can begin.

Part 4: Improve
The Improve phase of the Six Sigma project might be considered the reward for the hard work conducted in the previous phases. We begin to see the return on the invested time, planning, thought, and execution done on the project. The team implements solutions and begins to see the benefits from these improvements.

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Tools that are typically used at this phase are Brainstorming, DOE's (Design of Experiments), Quality at the Source, Regression Analysis, and Kanban to name a few. A Plan to Improve It is important to use the data from the Analysis phase to lead you to solutions. The Analysis phase many times shows a statistical solution. Now the team needs to brainstorm to develop a practical solution to implement. Many times multiple solutions may be derived. The team must prioritize and select the solution(s) to be implemented. These solutions are then implemented in pilot runs to see if the actual results match those predicted or suggested from the analyze phase. Pilot runs allow the team to control the environment to see the impact of the improvement implemented. It also allows the team to change or adjust the solution, if needed, for better results. This occurs many times and should not get the team discouraged. Further DOE's may be needed to see how to improve the piloted improvement. It is important not to get stuck in a loop during the Improve phase. The team may be striving for unobtainable results and will continue to go back to the drawing board to come up with improvements. The team may even move beyond the scope of the project in the desire to "fix the world." If the solution(s) / improvement(s) work very well during the pilot, implement them fully and consider this phase closed.

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Part 5: Control
The Six Sigma project is brought to closure through the Control phase. While the project is coming to an end, this does not close the door on continuous improvement. This phase sets the tools in place to continually monitor the process. By monitoring the process data can be used to evaluate the performance and areas for improvement.

Tools that are typically used at this phase are SPC (Statistical Process Control), Standardized Work, and Visual Controls to name a few. Maintain Gains of the Project through Control There are critical steps that need to be taken during the Control phase of the project. If they are not taken there is a high probability that the gains seen during the project will not be sustained. The first step is to create a plan to monitor the process. This can be as basic as simple metrics to more formal control charts. In either case, short- and long-term analysis needs to be completed on the data at regular intervals. This will help to sustain improvements and evaluate any needed actions for further improvements. The next step is sometimes overlooked, but is needed for the long-term success of the project documentation of, and training to, the new process. All personnel must be familiar with the new changes and why they are being made. Along with this is the transfer of ownership to the process owner or champion if they have not been leading the project. These last steps are critical to the success of Six Sigma within the organization. During these steps there is the closure of the project through the project charter. This includes analysis of the gains from the project, the successes during the project, and any lessons learned during the project. This review should be presented to management for their consideration and approval. Further review of the project should also include areas of opportunity to integrate or institutionalize the improvements into other areas of the organization.

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The Ways in Which Six Sigma Can Fail

Solid implementation is one of the most important things to help you make the most out of Six Sigma. Recently in the news has been some talk about Home Depot and how they had to let their CEO go because of his over the top Six Sigma implementation and many look at this as a short coming of Six Sigma yet from Home Depot s standpoint they want someone to manage their company using Six Sigma but the tunnel vision that their former CEO had was just overwhelming and while it did improve the company s bottom line their employees were not happy with the implementation and this is where the CEO met with difficulties that he did not adjust to deal with. There are actually several ways that Six Sigma can fail and one of the biggest ways is by using an overemphasis or rigid approach and this is exactly what Home Depot experienced. While Six Sigma is important the problems that are sometimes created need to be looked at and adjusted for. In this case it was that while the customers were being made happier the employees were being made more dissatisfied by the layout of the store, location of displays, and other issues that were effecting their work environment. At the same time that Six Sigma was improving their bottom line it was also in turn creating unhappy employees, which in essence is self defeating because these are the front line people that customers are dealing with each and every day. This is a big hindrance to improving customer experience. Six Sigma works and works well and even Home Depot would tell people that but the people who are involved in Six Sigma implementation are key to making it a success, a half success, or a complete failure. Having someone who is so smart and well trained in Six Sigma principles but with little common sense to adapt the principles to their business can truly be self defeating and can create the impression that 6 Sigma doesn t work even though it does each and every time it is used correctly.

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Motorola Case Study And The Malcolm Baldrige Award

In 1988, Motorola was recognized for its excellence in manufacturing and business processes when the company received the Malcolm Balridge Award for Excellence. The Balridge Award is awarded to companies that have successfully implemented Six Sigma standards, although this is not explicitly expressed. The Malcolm Baldrige Award is

compatible with the standards set forth in Six Sigma, Lean Six Sigma and ISO 9000. These processes are based upon achieving performance excellence in the work place. The award is given by a member of the Presidential staff as a commemoration for performance excellence in the United States and Global economy. The recipients of the award established leadership roles in their community with other business leaders, schools, health care organizations or nonprofit agencies. In 2009, Honeywell Federal Manufacturing and Technologies received the Balridge Award for Manufacturing. The award process examined the company s processes in terms of their leadership, strategic planning, analysis, measurement processes, customer focus and knowledge management. In 1992, Honeywell laid the groundwork to prepare to receive the Malcolm Baldrige Award in 2009. In this year, they adopted the Six Sigma processes. By 1999, the company had saved more than $600 million. By 1998, they had increased market value by 27% each year. With Six Sigma processes in place, Honeywell reduced certification time from 42 to 33 months. For the past 3 years, Honeywell has invested approximately $25 million annually in innovative designs and technology. The company integrates Six Sigma Plus Continuous Improvement Model into every customer interaction and design project. In 2002, Motorola won another Malcolm Baldrige award while implementing the processes of Six Sigma. Companies who successfully implement the program have been recognized at the highest levels within their communities, nationally and globally. Winning the Baldrige award is a huge return on investment for these companies.

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Generial Electric Six Sigma Case Study

In 1996, Jack Welch adopted the Six Sigma process for General Electric. Jack Welch implemented the Six Sigma program when he discovered the effects the program could have on the quality of General Electric products. The CEO and Chairman of GE desired to have his company s product be 10,000 times better than its competitors. He set a goal of becoming defect free in all products, services, training, career path planning, measurements and transactions by the year 2000. Over time, customers who recognized the superior construction of GE s products became loyal to the brand and desired only GE products. Initially, GE invested nearly $200 million to achieve this goal in the company. Later, the company invested several hundred million in hopes of saving $7 to $10 billion in the coming years. Over time, the company realized a profit of $100 million and countless dollars saved. By the end of 1998, the company had saved over $750 million. Invoice defects and disputes were decreased by 98 percent. Payment processing speeds and productivity increased dramatically. Annually, the company save an average of $1 million from streamlining the contract review process and faster deal completion. Over the years, the company has shown improvement in capacity and output. They have improved customer satisfaction. Process flow runs smoothly compared to previous processes. Productivity of their employees improved and the cycle times were decreased. General Electric maintained its place in the Fortune 500 companies and customers have grown to know the company as one that produces quality products. Each of these goals was achieved by implementing and striving to reach Six Sigma quality in every process within the company. Every business unit within GE including GE Capital, GE Medical Systems, GE Appliances and GE Plastics adopted Six Sigma processes in to their business model in order to achieve success.

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Jack Welch also realized that Six Sigma was not only about the processes, but about the people implementing the processes. He desired to hire the best people in order to steer the company towards quality and Six Sigma processes. A typical General Electric employee has an incredible energy and desire to motivate the company s employees toward Six Sigma success. The ideal employee will have the desire to gain market share and win in the market place. The person should know that achieving the best product is not only a technical process, but also involves developing a brand image and loyalty to its customers. The Six Sigma process should be achieved while remaining cognizant of the finances of the company. In reality, most successful companies do not actually achieve 6 sigma. Most companies operate along the level of 3.5 sigma. Motorola actually won the Malcolm Baldridge Award operating at this level in 1988. General Electric adopted the DMAIC phases described in order to achieve success in their organization. These phases are described in detail on a previous page. GE used intensive statistical analysis programs in order to ensure that high standards were achieved and maintained within the organization. Extensive training of employees was required in order to achieve Six Sigma standards throughout the organization. By 2000, the company had trained 4,000 Master Black Belts and Black Belts and 60,000 Green Belts. As an incentive to top executives, Jack Welch only awarded bonuses to those who achieved Six Sigma standards within their organizations. The vision of Six Sigma began with the CEO and upper management and disseminated to the lower tier management and organizations. Attaining Six Sigma quality requires significant commitment on behalf of the leadership. The leadership retrained the staff to think in a new way. The new way was drastically different than their previous way of thinking. They spent hundreds of millions of dollars towards this effort. The improvements in productivity and service have more than paid for the investment into the program.

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Six Sigma And Other Company Success

Companies such as Ford and American Standard also applied Six Sigma processes in order to achieve significant results. Though neither of these companies was a recipient of the Malcolm Baldrige Award, they constantly worked to achieve Six Sigma high quality standards within their organizations. Both companies are reputable and dedicated to continuous improvement within their respective companies. Each company will be explored to determine how Six Sigma processes have affected their companies growth and productivity.

Ford
Ford held the number one position in sales for several years in American history. Part of their success was attributed to adopting Six Sigma processes in their company. In 2000, nearly $52 million was added to their bottom line. In 2001, the company reported a $300 million increase. By adopting Six Sigma standards, the company eliminated wasteful spending and reported a savings of $350 million in 2002. They improved half of their Things Gone Wrong items on the check list. Consequently, the Ford brand is producing products in 2010 that are making the Top Five rankings for best vehicles in their class. Ford Fusion is one such vehicle that has remained competitive in its class. Six Sigma processes work and allow companies like Ford to produce products that consumers desire and rank high in terms of consumer satisfaction.

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American Standard

American Standard also adopted the Six Sigma processes within their company. After adopting Six Sigma processes, the company doubled their production capacity on one of their assembly lines. Additionally, they reduced costs by more than $300,000 at one of their plants. Six Sigma experts reviewed their expenditures and realized they could cut another $500,000 at another plant. This was a significant savings for the company. The company s experts also realized they were losing money on castings for faucets. After these expenditures were reviewed, they were able to save an additional $2.1 million for American Standard. After applying the principles of Six Sigma in the organization, the company increased the quality and efficiency of its processes. At this point, they were able to save $35 million. Because of the Six Sigma standards, the company attained great savings and improved processes.

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Six Sigma in the Indian Context: Project On Tata Consultancy Services: Quality Improvement - The Six Sigma Way
By:
Mala Murugappan SEPG coordinator at Offshore Engineering Development Center, Chennai, India. A Certified Quality Analyst, her interests include process and quality improvement and Six Sigma Quality. She hasundergone Six Sigma Training for Green/Black Belt conducted by GE, India. & Dr. Gargi Keeni Corporate Quality Head at Tata Consultancy Services Certified Quality Analyst and CMM Lead Assessor, she has extensive experience in software project management, software tools development, managing training activities, managing human resource allocation and managing quality processes implementation.

Abstract: Six Sigma provides an effective mechanism to focus on customer requirements, through improvement of process quality. In the Global Engineering Development Center of Tata Consultancy Services (TCS GEDC) at Chennai, India, Six Sigma projects are being carried out with the objective of improving on time delivery, product quality and in-process quality. This paper describes the application of the Six Sigma methodology comprising the five phases Define, Measure, Analyze, Improve and Control, by taking the example of a project, and demonstrates the benefits attained.

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Background: The Global Engineering Development Center of Tata Consultancy Services (TCS GEDC) located at Chennai, India, has been executing projects for various businesses of General Electric Company (GE) since 1995. The projects span the areas of Engineering Design, Computer Aided Design, Finite Element Analysis, Software Development for Engineering Automation and Implementation of Product Data Management Solutions. TCS GEDC has a number of

initiatives in quality and process management and is on its journey to Level 5 of the Capability Maturity Model (CMM) enunciated by the Software Engineering Institute of Carnegie Mellon University. TCS GEDC's long association with GE has influenced it to adopt the Six Sigma Approach for making disciplined and rigorous progress in quality improvement. TCS GEDC learns and leverages from the experience of GE in the implementation of Six Sigma Initiatives. Six Sigma Quality quantitatively means that the average review process generates 3.4 defects per million units where a unit can be anything ranging from a component to a line of code or an administrative form. This implies that nearly flawless execution of key processes is critical to achieve customer satisfaction and productivity growth The Six Sigma Initiatives in TCS GEDC started in 1998, and, since then, 10 Six Sigma projects

have been completed. These projects include Improvement of Schedule Compliance, Quality Compliance, Input Quality, Error Reduction, Cycle Time Reduction and Design Improvement. At present the Six Sigma Program addresses Productivity Improvement and Defect Prevention in the projects carried out in the TCS GEDC. The Six Sigma projects have been identified in the

areas of improvement after analysis of the process and product metrics against the center level specification limits .Currently, TCS GEDC has 6 Black Belt and 30 Green Belt ongoing projects

in different Business Groups. The Green Belt Projects are derived from the analysis phase / improvement phase of the Black Belt projects. The approach, methodology and benefits of Six Sigma is explained in this paper by taking the case of a Six Sigma project. This project is on the improvement of product quality compliance carried out in one of the Business Groups of TCS GEDC in 1998 1999.

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2. The Six Sigma approach The Six Sigma Approach is customer-driven. For a business or a manufacturing process, the Sigma Capability is a metric that indicates how well the process is being performed. The higher the Sigma Capability, the better, because it measures the capability of the process to achieve defect-free-work (where a defect is anything that results in customer dissatisfaction).

The Six Sigma Approach is also data-driven. It focuses on reducing process variation, centering the process and on optimizing the process. The emphasis is on the improvement of process capability rather than the control of product quality, which includes the improvement of quality and reduction of cost of quality.

In short, the Six Sigma Approach focuses on:  Customer needs  Data-driven improvements  The inputs of the process And this results in:  Reducing or eliminating defects  Reducing process variation  Increasing process capability

In this context, the customer requirements for our centre are  On-Time  Accurate  Complete Customer

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Deliverables  Customer Responsiveness  Marketplace Competitiveness To achieve these goals the Six Sigma approach was adopted in all the projects to pinpoint sources of errors and ways of eliminating them.

3. Deployment All employees are trained on Six Sigma Quality to increase their awareness, understanding, and the day-today use of Six Sigma tools and processes, and their application to projects. Six Sigma projects (quality projects) are chosen, based on customer feedback and analysis of the process metrics. Projects that have a significant customer impact and financial savings are given top priority. To successfully execute these Six Sigma projects, an organization structure as shown in Figure 11 has been formulated. This structure consists of the following roles:

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Champion: The Center Manager is the Champion, who facilitates the implementation / deployment of the Six Sigma Program. The Champion creates the vision, defines the path to Six Sigma Quality, measures the progress and sustains improvements. Master Black Belt: The Master Black Belt is a Mentor, who develops a Six Sigma network, provides training on strategies and tools, gives one-to-one support on utilization and dissemination of Six Sigma tools, and supervises the Six Sigma projects. The Master Black Belt also facilitates sharing of best practices and actively participates in the change process. Black Belts / Green Belts: Black Belts / Green Belts lead process improvement teams, demonstrate credible application of Six Sigma tools, train their team members and are accountable for Six Sigma project results. While Black Belts work full-time on Six Sigma projects, the Green Belts work only part-time on the Six Sigma projects and devote the rest of their time to other projects. The Black Belts report the progress of their projects to the Master Black Belt and the Green Belts report the progress of their projects to the Black Belts. The Green Belts are expected to complete two Six Sigma projects while the Black Belts are to complete five. The criteria for a successful Six Sigma project could be any one of the following: i. There is an improvement of one sigma in the process capability, if the project has started the process with less than one Sigma. ii. There is a 50% reduction in defects, if the process has started with more than three Sigma iii. There is a Return on Investment of 20%.

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4. Methodology

A Six Sigma Project consists of the following phases: Define: The product or process to be improved is identified. Customer needs are identified and translated into Critical to Quality Characteristics (CTQs). The problem/goal statement, the project scope, team roles and milestones are developed. A high-level process is mapped for the existing process. Measure: The key internal processes that influence the CTQs are identified and the defects generated relative to the identified CTQs are measured Analyze: The objective of this phase is to understand why defects are generated. Brainstorming and statistical tools are used to identify key variables (X s) that cause defects. The output of this phase is the explanation of the variables that are most likely to affect process variation. Improve: The objective of this phase is to confirm the key variables and quantify the effect of these variables on the CTQs. It also includes identifying the maximum acceptable ranges of the key variables, validating the measurement systems and modifying the existing process to stay within these ranges. Control: The objective of this phase is to ensure that the modified process now enables the key variables to stay within the maximum acceptable ranges, using tools like Statistical Process Control (SPC) or simple checklists.

5. Six Sigma project on quality compliance This section discusses a Six Sigma project on the improvement of product quality compliance, which will give a better understanding of the approach, methodology and benefits of Six Sigma.

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5.1. Define phase The project teams had the problem of field errors being reported in the deliverables. Based on the metrics for 1997, the long-term process capability for product quality was at 3.48W, while the short-term capability was at 4.98W, and the Defects Per Million Opportunities (DPMO) were at 253. A Six Sigma approach was initiated to improve the quality of deliverables. The goal of the project was to improve the long-term process capability to more than 4 and to reduce the DPMO by more than 50%.

The project started the Define Phase with the identification of Product Quality as the CTQ. Team members from different levels namely Project Leaders, Module Leaders, Team Members and the Quality Team were identified for the Six Sigma project.

A high-level process mapping for the existing process was made as shown in Figure 5-2.

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The next step was to define the measurement system. Any attribute in the deliverable sent to the customer, which does not meet the customer s requirements, or which is not as per the Customer s Standards was defined as a defect. For the purpose of calculating DPMO, the opportunity, which is a product or process characteristic that adds or deducts value from the product, was defined, based on the opportunity definition by the client.

5.2. Measure phase During this phase, the key processes in the project lifecycle that affect the CTQ (in this case, product quality), were identified to be project study, execution and delivery. Measurements related to the CTQ were made in these phases. The field errors reported by the client were classified as defects that have occurred in each of these processes as shown in Figure5-3. In each of these processes, the input process variables (controllable or critical-those that show statistical significance) that affect the CTQ were identified as shown in Figure 5-4.

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The Input Variable

Quality of Inputs, had various attributes namely, clarity of scope

definitions, completeness of inputs, and conformance of inputs to standards. This variable became a critical variable that affected the product quality, since the inputs for the projects were obtained from the customer. The projects that were affected by poor quality of inputs were measured. As depicted in Figure 5-5, a substantial number of projects were affected by poor quality of inputs in 1998.

Therefore, it was decided to analyse the effect of quality of inputs separately. A Black Belt project named 'Analysis of Input Quality' was executed in 1998. As a result of this project, process control in the form of an input checklist was introduced at the project start-up phase, to prevent defects occurring in the project deliverables due to wrong inputs.

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The Input Variable

Quality of Inputs, had various attributes namely, clarity of scope

definitions, completeness of inputs, and conformance of inputs to standards. This variable became a critical variable that affected the product quality, since the inputs for the projects were obtained from the customer. The projects that were affected by poor quality of inputs were measured. As depicted in Figure 5-5, a substantial number of projects were affected by poor quality of inputs in 1998. Therefore, it was decided to analyse the effect of quality of inputs separately. A Black Belt project named 'Analysis of Input Quality' was executed in 1998. As a result of this project, process control in the form of an input checklist was introduced at the project start-up phase, to prevent defects occurring in the project deliverables due to wrong inputs.

5.3. Analyze phase Process performance was assessed using Cause-and-Effect diagrams, to isolate key problem areas, to study the causes for the deviation from ideal performance, and to identify if there is a relationship between the variables. Extensive brain-storming sessions were held with team

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members to evolve these diagrams. Figure 5- 6 shows the Cause-and-Effect diagrams for one of the project teams. The probable causes that can lead to quality non-conformance in a project during different phases of a project life cycle were listed The Failure Modes and Effects Analysis (FMEA) was subsequently carried out to arrive at a plan for prevention of causes for failure. FMEA is a tool that helps prevent the occurrence of problems by: Identifying the potential failure modes in which a process or product may fail to meet specifications, and rating the severity of the effect on the customer. Providing an objective evaluation of the occurrence of causes Determining the ability of the current system to detect when those causes or failure modes will occur. Based on the above factors, a Risk Priority Number (RPN) for each failure mode is calculated

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Based on the recommended actions from FMEA, several process improvements were introduced in the phases - Project Study, Execution and Delivery. These improvements include developing process control and error proofing tools amongst others. Figure 5-7 shows some of the improvements carried out in different phases. In addition to this, a customer feedback form was introduced. The various quality attributes of the deliverables are rated by the customer on a 1 to 5 scale. Causal analysis is carried out by teams when the rating is below 4 and preventive actions are initiated.

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5.5 Control phase

The process improvements that were introduced resulted in the reduction of field errors. The process capability for quality of deliverables improved from 3.48W to 3.98 W in the long-term and from 4.98W to 5.48W in the short-term by the end of 1998, and the DPMO reduced from 253 to 34. This trend continued in 1999 and 2000, resulting in the improved trend in the quality compliance as shown in Figure 5-8. The best practices and lessons learnt in this Six Sigma project for engineering design were applied in other project teams and other types of projects. Since the field errors reduced and the process capability for quality deliverables increased to more than five sigma, the emphasis shifted to improvement of in-process quality. This is to be achieved through reduction of in-process quality cost as explained below. The project life cycle has a phase for Quality Assurance (QA). As a continuous improvement initiative, Green Belt projects have been initiated in different project teams, to reduce the rework cost after QA. These Green Belt projects used the results of the Cause and Effect, and FMEA of the Six Sigma project on Quality Compliance.

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A number of Defect Prevention practices were identified in these GB projects and were built into the processes of the project life cycle. To measure the quality cost, a metric called "rework" index was used. This metric is calculated as percentage project effort spent in rework. Control charts (I-MR) were drawn to track the process level (process characteristic within projects) and process variation (process characteristic between projects) simultaneously and also to detect the presence of special causes.

6. Conclusion
The thrust on Six Sigma Quality has helped in creating and sustaining customer focus in the TCS GEDC, leading to improved customer satisfaction as indicated in the feedback from the customer. At the same time, active participation of the team members from all levels in the Six Sigma projects has evolved a culture of effective and creative team work. The goal is to achieve Six Sigma level not only in product quality, which is currently at 5.85W, but also in the other client specified metrics of on-time delivery and estimate compliance. To achieve this goal, TCS GEDC plans to have about 60 Six Sigma projects completed by the second quarter of 2001.

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Bibliography

http://www.tcs.com/SiteCollectionDocuments/White%20Papers/QualityImprovementTheSix SigmaWay.pdf www.6sigmaonline.net www.sixsigma.in http://www.insyte-consulting.com/Resources/Articles/UnderstandingthePhasesofSixSigma ieee journals on Six Sigma by Steve DiIoia, Six Sigma Master Black Belt Quality Improvement The Six Sigma Way By: Mala Murugappan and Gargi Keeni Tata Consultancy Services

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